Preface iii
Standard Bidding Documents
Supply and Installation of
Information Systems
Two-Stage Bidding
The World Bank
March 2003
Preface iii
Preface
Background on IT Procurement
Large Information Technology (IT) and Systems (IS) contracts are among the most challenging to procure in World Bank-financed projects because:
· their technical content is diverse and difficult to define;
· they are highly affected by changing business objectives, organizational politics, and institutional capacity of the end-user;
· they are subject to rapid technological change over the project life-cycle; and
· they entail mixtures of professional engineering services and supply of diverse hard and soft technologies.
Thus, specialized standard bidding documents (SBDs) became necessary to facilitate IT procurement[1] under World Bank financing. IT SBDs provide bidding and contracting models that facilitate successful installation, integration, and operation of a range of information technology applications — from straightforward supply and maintenance of technology products, to complex development, integration and operation of mission-critical information systems.
When to Use this SBD?
This SBD for Supply and Installation of Information Systems (IS2STG SBD) is recommended for two-stage procurement of supply and installation of information systems. Pending the development of a specialized bidding document, this IS2STG SBD may also be used for the two-stage procurement of systems engineering services.
This SBD for two-stage bidding was developed from the existing single-stage SBD for supply and installation of information systems (IS1STG SBD), using two-stage material from a trial version of the document as well as the two-stage version of the SBD for supply and installation of plant and equipment. Just like the latter, the IS2STG SBD differs from the IS1STG SBD only in this Preface, the Invitation for Bids, the Instructions to Bidders, the Bid Data Sheet, and the Bid Form subsection under Sample Forms. All the remaining parts of this SBD are completely identical with the corresponding parts in the IS1STG SBD, and even the parts that are changed, differ only to the extent the two-stage bidding process needs to be reflected.
Supply and Installation of Information Systems
Two key features distinguish supply & installation from goods procurements namely, increased supplier’s risk and complex service requirements. Together these two features increase significantly the complexity and risk of the procurement and require different evaluation and contracting terms.
In Supply & Installation procurement the Supplier assumes responsibility for the design, supply, and installation of a facility defined by the Purchaser mainly in terms of performance specifications. Therefore, the Supplier’s responsibility goes beyond the supply of whatever products or services the Purchaser requests, and extends to the provision of any other products or services required to make the facility perform to specifications.
IS Supply and Installation procurement, therefore, requires a degree of professional judgment and expertise from suppliers that is commensurate with the higher degree of risk they are called to assume. This frequently results in large and complex service components for this type of procurement.
Two-Stage Processing
For relatively complex Information Systems, a single-stage bidding process is often inadequate and risky. Under a single-stage process, the necessary detail in the technological requirements and/or contractual arrangements can unduly constrain the implementation approaches that potential suppliers may otherwise propose to address the business and/or functional requirements of the Purchaser. In contrast, the two-stage bidding process permits to maintain the openness of the spectrum of technological solutions and implementation approaches, thus reduces the scope of losing potentially interesting proposals, while it leads to comparable bids in a structured and transparent manner.
Information Systems that may best be procured by a two-stage bidding process include
· complex business applications, (e.g., an integrated commercial banking system, a treasury management system, etc.).
· a system requiring extensive software development.
· complex information technologies (e.g., large scale data processing equipment, systems including highly specialized equipment such as graphics workstations, plotters, photographic equipment such as for advanced cadastres, systems requiring large-scale high-speed telecommunications).
· systems involving extensive technical services for design, development, customization, installation, training, operations and technical support.
· a combination of the above.
Under a two-stage bidding process, it is often the Purchaser’s business/functional requirements which form the basis of the Bidding Documents, rather than detailed technical specifications. In the first bidding-stage, the Purchaser solicits non-priced technical proposals to address these business/functional requirements. By way of a direct and structured dialog, the Purchaser arrives with each competent Bidder at a clear and documented understanding of those aspects of the Bidder’s bid that (a) fulfill the Purchaser’s requirements, (b) do not conform to the requirements, and/or (c) are missing. Based on this bidder-specific, documented understanding (and additionally based on possible amendments to the bidding documents), each Bidder that offered a sufficiently responsive first stage bid, is requested by the Purchaser to submit a second-stage technical proposal and corresponding financial proposal, i.e., a complete, final and priced bid. These “second stage bids” are then handled and evaluated in essentially the same manner as a single-stage bid.
In addition to maintaining openness in the technological and/or implementation approaches and permitting interaction between the Purchaser and Bidders during the first bidding-stage, the two-stage process can also save the Purchaser time in formally translating its business/ functional requirements into (nonrestrictive) technical requirements. Potential time savings, however, are somewhat offset by the additional time required to conduct the first bidding-stage. The two-stage process also requires the Purchaser to be fully prepared to undertake the likely necessary detailed technical dialog with Bidders, and the diligent recording of its individual results by Bidder, in the first stage.
It is important to realize that it is one and the same bid (plus possible alternatives) that gets carried through both stages of the bidding process. In this sense, the second bidding-stage merely constitutes the updating and refinement of first stage bids, and their pricing.
Process for Feedback and Discussion of IT Procurement Issues
Over the several years of trial use since its first version in February 1999, the IS1STG SBD was periodically updated with feedback received from World Bank borrowers, World Bank staff, and members of the IT Industry through the IT Procurement web site and through ad-hoc conferences. Requests for, and suggestions regarding, a two-stage version of the SBD were also received, demonstrating the need for it. However, until the issuing of this IS2STG SBD, only ad-hoc/trial versions have been available for use.
The World Bank welcomes further feedback on this Standard Bidding Document, particularly from people who have used it in actual procurement transactions. Please address your comments to:
Procurement Policy and Services Group
Operations Policy and Country Services (OPCS)
The World Bank
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
e-mail:
Internet: http://www.worldbank.org/html/opr/procure/
Two-stage Bidding Process Flowchart
[excludes pre-qualification (if any) and advertisement/IFB process steps]
Bidding Documents(issued by Purchaser) /
First Stage Bid
(submitted by Bidder)Instructions to Bidders
Bid Data Sheet
Eligibility for the Provision of Goods, Works and Services in Bank-Financed Procurement / General Conditions of Contract
Special Conditions of Contract
Technical Requirements
Sample Forms / ® / Bid Form--1st Stage
Authorization to sign (& any Joint Venture documents)
Attachments:
1. Bidder’s eligibility
2. Bidder’s qualifications (incl. manufact. authorizations)
3. Eligibility of / goods and services
4. Conformity of the information system (incl. technical bid and project plan)
5. Proposed Subcontractors
6. Intellectual property
7. Deviations
8. Alternative technical bids
å
Clarification Phase and 2nd Stage Invitation
(issued by Purchaser)
Invitation for Bids -- 2nd Stage
Bidder-specific Memorandum of Changes
Amendments to Bidding Documents (if any)
¯
Second Stage Bid
(submitted by Bidder) / Contract DocumentsBid Form--2nd Stage
Authorization to sign (& any Jt. Vent. docs.)
Bid Security
Price Schedules
Attachments:
1. Bidder eligibility
2. Bidder qualifications (incl. manufacturer authorizations)
3. Eligibility of goods and services
4. Conformity of the information system (including updated technical bid, and updated preliminary project plan)
5. Proposed Subcontractors
6. Intellectual property / ® / Notification of Award
Bid Form
Price Schedules
General Conditions of Contract
Special Conditions of Contract
Contract Agreement and Appendixes:
1. Supplier’s Representative
2. Adjudicator
3. Approved Subcontractors
4. Categories of Software
5. Custom Materials
6. Revised Price Schedules (if any)
7. Minutes of Contract Finalization
8. Change order procedures and forms
Updated Technical Bid
Any other documents agreed as forming a part of the Contract
Instructions to Customize the Bidding Document for a Specific Procurement
As shown in the table below, this SBD contains two types of documents: those which must be used unchanged and those that should be customized specifically for each procurement. An electronic version of this SBD is available from the Bank’s project staff or can be downloaded from http://www.worldbank.org/html/opr/procure/ . This version can be used to customize the Invitation for Bids and Sections II, V, VI, and VII, to meet the requirements of the specific procurement. Sections I, III, and IV, however, must be incorporated unchanged in the Bidding Documents.
To be customized / To be used unchangedInvitation for Bids
Section II Bid Data Sheet
Section V Special Conditions of Contract
Section VI Technical Requirements (including Implementation Schedule)
Section VII Sample Forms (including the Form of Contract Agreement) / Section I Instructions to Bidders
Section III Eligibility for the Provision of Goods, Works, and Services in Bank-Financed Procurement
Section IV General Conditions of Contract
The specific details of the Instructions to Bidders must be included in the Bid Data Sheet only. Amendments to the General Conditions of Contract must be made through the Special Conditions of Contract. The Technical Requirements section should not be used to modify any of the subjects covered by Sections I, III, or IV.
Clauses included in Section V, Special Conditions of Contract, are illustrative and should be modified as appropriate to reflect the specific needs of each procurement. Because such modifications prevail over the General Conditions of Contract, major changes should be avoided unless absolutely necessary. If, in the opinion of the Purchaser, the specific nature of a procurement justifies a change, the World Bank should be consulted. Major changes require the approval of the Bank.
Some of the language presented in Section VI, Technical Requirements, as well as certain Sample Forms (so identified), are also illustrative. Appropriate modifications should be made to match the requirements of each particular procurement.
The following typographical conventions are used in this SBD:
· Standard SBD text is presented in a typeface such as used in this line (serif roman typeface).· Explanatory text and notes are presented in a typeface such as that used in this line and in the body of this Preface (sans serif typeface).
· When parameters, options, instructions to prepare the Bidding Document, or explanatory notes appear directly within the standard text, they are enclosed with square brackets, italicized, and the key parameter bolded. For example:
“The Warranty Period is[insert: number] months from the date of the Operational Acceptance of the System.”
· When options appear within the text, they are enclosed within square brackets and separated by the slash character “/”. For example:
“The language of all correspondence and documents related to the bid is [select: English / French / Spanish ].”
· Otherwise, italic typeface is used to indicate guidance in selecting a word or clause which then follows in bolded italic typeface as a parameter or option, or follows enclosed in double quotation marks if suggested verbatim as “fully formulated text.”
All explanatory text (i.e., all text in sans serif typeface) must be removed from the final Bidding Document. Also, all bracketed text must be either removed, if not relevant to the specific procurement, or selected for inclusion in the final Bidding Document. Where options are presented, one must be selected and the final chosen text should be presented in standard roman typeface. Such text, if in bold italic typeface, could simply be highlighted, un-bolded, the italics switched off, and any starting and ending quotation marks removed.
Footnotes that provide guidance and instruction to the Purchaser in preparing the Bidding Document should also be removed from the final draft. However, some Sample Forms contain footnotes that provide instructions to bidders on how the form should be prepared. These should remain in the final Bidding Document.
IS2STG SBD--V3a-Mar-31-2003 (A4)
Preface iii
Contents
Preface i
Invitation for Bids (IFB) 1
Notes on the preparation of the Invitation for Bids (IFB) for a two-stage bidding process 2
Invitation for Bids (IFB) -- Second Stage 6
Section I. Instructions to Bidders (ITB) 9
Notes on the Instructions to Bidders (ITB) for a two-stage bidding process 10
Table of Clauses 11
Section II. Bid Data Sheet (BDS) 55
Section III. Eligibility for the Provision of Goods, Works, and Services in Bank-Financed Procurement 73
Notes on the Eligibility section 74
Section IV. General Conditions of Contract 77
Notes on the General Conditions of Contract (GCC) 78
Table of Clauses 79
Section V. Special Conditions of Contract (SCC) 151
Notes on the preparation of the Special Conditions of Contract (SCC) 152
Table of Clauses 155
Section VI. Technical Requirements (including Implementation Schedule) 187
Notes on the preparation of the Technical Requirements 188
Notes on preparation of the Implementation Schedule 190
Table of Contents: Technical Requirements 194
Section VII. Sample Forms 221
Notes to the Purchaser on the preparation of the Sample Forms 222
Notes to Bidders on the preparation of Sample Forms 225
Table of Sample Forms and Procedures 228
IS2STG SBD--V3a-Mar-31-2003 (A4)
Invitation for Bids 3
Invitation for Bids (IFB)
Notes on the preparation of the Invitation for Bids (IFB) for a two-stage bidding process
In accordance with the Guidelines: Procurement under IBRD Loans and IDA Credits, the Invitation for Bids (IFB) -- First Stage/ Specific Procurement Notice (SPN) shall be issued (in the language of the Bidding Documents) as:
(a) an advertisement in at least one newspaper of general circulation in the Purchaser’s country and in the official gazette, if any;